Article by: ETO Markets

This Tuesday, in the absence of significant economic data releases, gold prices remained relatively stable. XAU/USD traders were in a wait-and-see mode, anticipating the announcement of the latest monetary policy on Wednesday evening. According to the CME FedWatch tool, the probability of the Federal Reserve cutting interest rates in September decreased from 50% last week to 46.7% on Tuesday.

On the daily chart, gold prices have formed a Head-and-Shoulders pattern, indicating that if the neckline at $… is truly broken, the price of gold could move towards the target of $... The current first line of defence is the May 3 low at $… , followed by the key levels at $… and $…, and finally the Head-and-Shoulders pattern target range of $…-$... If gold buyers regain control and push the XAU/USD price up to $…, their ultimate target will be the all-time high of $...